If you were going to contract a facility by removing 10% of the older seats, but the costs of providing ushers and other personnel to deal with the remaining seats was exactly the same (on a per seat basis)as it had been , the new MC curve would look like the previous one except that it would

Question

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Removing 10% of the older seats reduces the total capacity of the facility, which means the marginal cost (MC) curve would shift to the left. This is because the total number of seats that can be filled before incurring additional costs (e.g., needing more ushers for extra seats) has decreased. The cost per seat hasn't changed, but the maximum capacity before reaching a new level of cost has, thus shifting the MC curve to the left.

If You Were Going to Contract a Facility by Removing